Energy efficiency Agreement Scheme in Finland

Since the introduction of EU directives in the field of energy efficiency – the Energy Services Directive (ESD) and the subsequent Energy Efficiency Directives (EED) – voluntary energy efficiency agreements have served as a key policy instrument for implementing several obligations set out in these directives and for achieving the targets, including the nationally binding EED cumulative energy savings obligation. Through the agreement scheme, Finland makes use of the option provided in the Energy Efficiency Directive (EED) to implement the obligation through alternative policy measures.

In Finland, the efficient use of energy has been promoted through energy-efficiency agreements between the Government and various sectors since the late 1990’s. Since 1997 the policy measure has been implemented continuously for nearly three decades through four consecutive agreement periods, with the current period now underway.

Continuity has enabled long-term cooperation, steady capability-building and cumulative results across sectors, while ensuring that energy efficiency work continues seamlessly from one agreement period to the next.

The Finnish Energy Efficiency Agreement Scheme, based on voluntary commitments, delivers a range of valuable benefits that mandatory schemes often cannot provide. Compared to legislative or other obligatory means, the agreement scheme provides a more flexible and effective way for participants to improve their energy efficiency.

A voluntary approach enables market-driven change and innovativeness, allowing participants to implement the most suitable and cost-effective energy efficiency measures and investments at their own pace. Participants commit to setting targets, planning measures, implementing improvements and following up results as part of their normal operations and management practices. From the government’s perspective, voluntary based agreements scheme is considered a feasible and cost-effective way to achieve energy efficiency targets at both national and EU level.

At the national level, the agreement scheme effectively serves as a structured approach to managing energy efficiency, incorporating elements of an energy efficiency management system. Due to its extensive coverage across sectors, it serves as a national tool for ensuring that energy efficiency is systematically taken into account across a wide range of operations in Finland. In this way, the agreement scheme also functions as the energy efficiency first principle at the national level.

The long history of cooperation in this field has created functional and trustworthy relationships between the agreement parties. The ability and willingness to cooperate create trust and a shared sense of responsibility – this is one of the key success factors of the scheme. Government administration, sector and branch associations, participating companies and municipalities all share a common goal, and all parties strive to achieve it at several levels – individually, industry-wide and nationally.

A broad and well-functioning network supports this cooperation, where collaboration between companies across sectors plays a key role in improving energy efficiency and fostering innovation. An active and committed network also enables effective knowledge sharing, including both policy-level guidance and practical energy efficiency insights, such as the exchange of best practices.

Participants take genuine ownership of improving their energy efficiency – they commit to their indicative energy savings target, with pride, determination and drive. In practice, participants integrate the continuous improvement of energy efficiency into their action plans or management systems in use.

One of the key obligations participants commit to is the annual reporting of energy use and implemented energy efficiency measures. The reporting system has been in place for many years, providing Finland with reliable data on implemented energy efficiency measures and the resulting energy savings.

A comprehensive monitoring and verification system enables Finland to use the Agreement Scheme to implement the EED Article 8 binding energy savings obligation. In addition to tracking the accumulation of energy savings at the national level, the monitoring system also serves participants by enabling them to evaluate the results of their own energy efficiency efforts.

Operational support is an essential part of the scheme. Participants receive a wide range of practical support for implementing the agreements and advancing their energy efficiency work. This support includes expert advisory services, practical guidance, regular webinars and events, e-learning courses, joint projects, and consistent communication.

For example, in 2024, needs-based and customised expert advice and guidance were provided to over 220 companies and municipalities participating in the agreements. In addition, more than 40 events were organised to support improvements in participants’ energy efficiency. A total of 2,800 energy efficiency professionals from participating organisations attended these events and webinars in 2024.

All these activities are designed to boost energy savings and to foster peer learning and the exchange of practical experiences and best practices within the participant network.

Government energy aid has long complemented the agreement scheme. Support for voluntary energy audits and case-by-case aid for energy efficiency investments have helped launch thousands of projects that might otherwise have been postponed or not implemented at all.

The availability of investment support is also an important incentive for organisations considering joining the scheme. In this way, financial instruments help convert voluntary commitment into concrete measures and measurable savings.